Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.
Helen of Troy (HELE – Free Report) is a stock many investors are watching right now. HELE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also note that HELE holds a PEG ratio of 1.31. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company’s expected EPS growth rate. HELE’s industry has an average PEG of 1.56 right now. Over the last 12 months, HELE’s PEG has been as high as 1.73 and as low as 0.79, with a median of 1.21.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock’s price with the company’s revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HELE has a P/S ratio of 0.63. This compares to its industry’s average P/S of 1.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Helen of Troy is likely undervalued currently. And when considering the strength of its earnings outlook, HELE sticks out at as one of the market’s strongest value stocks.
Financial Market Newsflash
No financial news published today. Check back later.
